DOEE to Create Green Infrastructure Credits

Under a D.C. Department of Energy and Environment program intended to incentivize the voluntary installation of runoff-reducing green infrastructure, the Stormwater Retention Credit Purchase Agreement Program will allow the selling and trading of credits by property owners and investors in new projects within the area of the city that drains into bodies of water. While the program may increase investors’ confidence in investing in green projects, it also allows new large development sites to skirt up to 50 percent of the stormwater management regulations that went into effect in January 2014.

The DOEE has pigeonholed over $12 million for the purchase of SRC credits from private parties, educational institutes, faith-based and nonprofit organizations over a 20- to 30-year life cycle, with $500,000 reserved to support technical and outreach work to help identify cost-effective green infrastructure sites.

The program is intended to add “a market-shaping incentive for projects to be located in areas that provide the greatest benefit to District waterbodies,” according to a DOEE press release. The annualized program will allow the department to pay out much of its funding in the first few years, then reimburse itself by selling the credits to future regulated development projects.